During the current 2023-24 tax year ending on 5 April 2024, remember the Inheritance Tax (IHT) implications of cash gifts. Utilize the £3,000 annual exemption, with the ability to carry forward any unused portion for one year. If you made no cash gifts in 2022-23, you can gift up to £6,000 this tax year.
Explore generous exemptions for normal gifts made from income, with the condition of maintaining your standard of living post-gift. Additionally, reliefs are available for wedding or civil ceremony gifts. This would allow for up to £1,000 per person. Furthermore it would allow for higher limits of £2,500 for a grandchild or great-grandchild, and £5,000 for a child.
Offer unlimited small gifts of up to £250 per person during the tax year, provided no other exemption has been used on the same person. No IHT is applicable on lifetime gifts between you and your spouse or civil partner if both permanently reside in the UK.
Be cautious with other gifts beyond these limits, as they contribute to your estate’s value.